VOE.VI WACC - Weighted Average Cost of Capital

The WACC of voestalpine AG (VOE.VI) is 8.1%.

The Cost of Equity of voestalpine AG (VOE.VI) is 11.00%.

The Cost of Debt of voestalpine AG (VOE.VI) is 5.20%.

	Range	Selected
Cost of equity	9.40% - 12.60%	11.00%
Tax rate	25.30% - 29.90%	27.60%
Cost of debt	4.00% - 6.40%	5.20%
WACC	6.8% - 9.3%	8.1%

WACC

VOE.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	1.17	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.60%

Tax rate	25.30%	29.90%
Debt/Equity ratio	0.68	0.68
Cost of debt	4.00%	6.40%

After-tax WACC	6.8%	9.3%


Selected WACC	8.1%

VOE.VI's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for VOE.VI:

cost_of_equity (11.00%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (1.17) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.